San Francisco Public Utilities Commission (SFPUC) began the first phase of its $332M Bay Pipeline & Tunnel Water Construction Project on Thursday, March 18 in Fremont. SFPUC, Alameda County and city officials launched the first of three major water infrastructure projects that are part of the $4.6 billion Water System Improvement Program to improve the region's old water system.

The Hetch Hetchy Water System Improvement Program will soon begin the construction of Bay Division Pipeline No. 5, a 7-mile, 6-ft. diameter, welded steel pipeline that will pass through the cities of Newark and Fremont. The project is officially underway; the first segment of pipe will be installed within the coming week. The first phase of the project is a $61.4M pipeline project. The pipeline will be built parallel to Bay Division Pipelines No.1 and 2 and will consist of two segments: one in the East Bay and one on the Peninsula, with a new tunnel under the San Francisco Bay linking both sections. SFPUC will also initiate a $215.3M, 5-mile tunnel under San Francisco Bay and another 9-mile pipeline on the Peninsula. The Tunnel and Peninsula pipelines are anticipated to break ground this Spring. Completion of Tunnel construction is expected in 2015. The Peninsula Pipeline contract was awarded to Mountain Cascade, Inc., and expects to break ground in the coming weeks.

The project promises several economic and community benefits. It ensures reliable water supply after an earthquake while bringing jobs to the community. SFPUC General Manager Ed Harrington, Fremont Mayor Bob Wasserman and Alameda County officials highlighted the local jobs that will be created for Bay Area construction workers. Use of local suppliers and contractors, a local construction office in Newark and a regional office in Fremont translate to more revenue for the cities. It will boost local businesses like restaurants and coffee shops. The three contracts are expected to create 1.3 million man hours and more than $90M in wages and benefits.